Business
Brits issued winter energy supply warning with ‘tight days’ ahead
Great Britain’s energy system operator has warned of potential “tight days” this winter.
The National Energy System Operator (Neso) indicated that imported electricity from Europe could be used “when required” to power homes and businesses.
This outlook follows the publication of the latest winter energy reports by Neso and National Gas, after a rise in the price cap led to a surge in costs.
Neso stated on Thursday that electricity margins, reflecting the cushion of spare power supply, have risen to their strongest level since 2020.
However, it added that there could still be some “tighter periods”, which might need support from the energy industry.
“We expect a sufficient operational surplus throughout winter, although there may still be tight days that require us to use our standard operating tools, including system notices,” the report said.
System notices are how the grid operator informs the wider energy industry that electricity supply has not matched demand, allowing for production to increase if needed.
Early data from electricity firms and forecasters has suggested that “tight days” are most likely to take place in early December or mid-January.
Neso added that imports will be available when needed to help cover demand, supported by “adequate electricity supply across Europe”.
Deborah Petterson, director of resilience and emergency management at Neso, said: “A resilient and reliable energy supply is fundamental to our way of life.
“At Neso, we are looking at the upcoming winter and can report that this year’s winter outlook sets out the strongest electricity margins in six years.
“It is critical that we continue our work with the wider energy industry to prepare for the coming months to build on this foundation and maintain our world-leading track record of reliability.”
Meanwhile, the latest analysis from National Gas indicated that Great Britain has enough gas supply capability to meet peak demand.
It indicated supply can meet demand, “even accounting for unforeseen network outage scenarios”.
The gas network operator said gas demand is expected to be 3 per cent lower than last winter, easing pressure on supply.
It said high-demand days are still expected, but it stressed that it is “confident” the market will operate as needed.
Glenn Bryn-Jacobsen, director of energy systems and resilience at National Gas, said: “As we head into winter, we remain confident in the resilience of our gas system and our ability to meet Britain’s energy needs during periods of peak demand.
“The energy landscape is evolving, with a growing reliance on imports and the continued decline of UK continental shelf supplies.
“Meeting these challenges requires a coordinated, forward-looking approach, and we’re working closely with government, industry, and regulators to develop the right solutions that safeguard security of supply for the future.”
But the report from National Gas shows a fall in Britain’s gas storage capabilities, thanks to the Rough storage site off the coast of Yorkshire no longer storing gas, which means there is an increased reliance on importing liquified natural gas (LNG) to plug the gap in times of high demand.
The facility in the North Sea is the largest of its kind in the UK, but owner Centrica has stopped filling it with natural gas amid concerns over its financial viability.
The Rough site comprises about half of Britain’s storage capacity, and acts as a buffer when the weather is especially cold and demand for gas spikes.
Centrica has long warned it will be decommissioned without government support to allow investment in the site.
Business
Life sciences lab real estate is clawing back from disaster. Here’s what that means for investors
Business
Trump administration in advanced talks for a rescue package for Spirit Airlines, source says
A Spirit commercial airliner prepares to land at San Diego International Airport in San Diego, California, U.S., January 18, 2024.
Mike Blake | Reuters
The Trump administration is in advanced talks for a financing package for Spirit Airlines as the carrier is facing the risk of a liquidation, according to a person familiar with the matter.
Spirit had been facing a potentially imminent liquidation, people familiar with the matter told CNBC last week, speaking on the condition of anonymity to discuss matters that had not yet been made public. The Dania Beach, Florida-based carrier in August filed for its second Chapter 11 bankruptcy in less than a year, after it struggled to increase revenue to cover rising costs.
President Donald Trump hinted at potential government aid on Tuesday, telling CNBC’s “Squawk Box“, “Spirit’s in trouble, and I’d love somebody to buy Spirit. It’s 14,000 jobs, and maybe the federal government should help that one out.”
The White House didn’t immediately comment.
“We are hopeful that the government will recognize the needs for emergency funds especially in the current economic environment,” a spokesperson for the Associated of Flight Attendants-CWA, which represents Spirit’s cabin crews, said in a statement. “The last thing our economy needs is tens of thousands more people out of work and the last thing the travelling public needs is fewer choices in air travel.”
The terms of the financing deal weren’t immediately known. The Wall Street Journal earlier reported that the talks were in an advanced stage.
The U.S. airline industry accepted more than $50 billion in taxpayer aid to weather the Covid-19 pandemic, which is still its biggest-ever crisis, but those funds weren’t handed to one specific airline. Some of the aid gave the U.S. government stock warrants for airlines.
Airlines also received a government bailout following the Sept. 11, 2001, terrorist attacks, but that money was also for more than one company. The U.S. in 2008-2009 also bailed out the auto industry during the financial crisis and took stakes in manufacturers.
The Trump administration has taken equity stakes in some companies it deemed critical to national security like Intel and USA RareEarth, though Spirit stands out as it is in bankruptcy.
In February, Spirit said it expected to exit bankruptcy in late spring or early summer, telling a U.S. court that it would shrink and focus its planes on high-demand routes and travel periods. Pilot and flight attendant unions had also made concessions, including going on furlough in recent months, in a bid to help Spirit survive.
But jet fuel prices have nearly doubled in some parts of the U.S. since then, further adding to challenges for Spirit and the rest of the airline industry.
As a low-fare airline that also faces competition from larger carriers with their own no-frills, basic economy offerings, it has grown harder for Spirit to cover expenses. Spirit had introduced extra-legroom seats and other premium options to try to cater to higher-spending customers.
5 AI Models Tried to Scam Me. Some of Them Were Scary Good
Tesla widens India bet with launch of Model Y L – The Times of India
Life sciences lab real estate is clawing back from disaster. Here’s what that means for investors
-
Fashion6 days agoFrance’s LVMH Q1 revenue falls 6%, shows resilience amid Iran war
-
Entertainment1 week agoIs Claude down? Here’s why users are seeing errors
-
Sports1 week agoPSL 11: Peshawar Zalmi win toss, opt to field first against Quetta Gladiators
-
Tech1 week agoThe Deepfake Nudes Crisis in Schools Is Much Worse Than You Thought
-
Tech1 week agoBremont Is Sending a Watch to the Moon’s Surface
-
Tech1 week agoHuman-machine teaming dives underwater
-
Business1 week agoBP sees ‘exceptional’ oil trading result as Iran war sends crude costs soaring
-
Fashion1 week agoWhat no one is saying about the 2026 apparel slowdown